13-07-2021 | 14:20 PM
Stimulus Package for COVID-19
Finance Minister Nirmala Sitharaman recently announced a Rs 6.28 lakh crore stimulus package with the aim of boosting Covid-affected sectors following the eight measures proposed by the Ministry of Finance.
Eight key announcements
1. Expansion of healthcare infrastructure
• Credit guarantee scheme and an amount of Rs 23,220 crore was earmarked to expand medical infrastructure for one year. The funding aims to increase the number of ICU beds and enhance the availability of equipment & liquid medical oxygen (LMO). It will emphasize the preparedness of healthcare infrastructure in terms of child and pediatric care.
2. Free visas, loans for travel agencies
• As the issuance of visa resumes, the first five lakh tourist visas will be issued free of cost. This visa incentive will cost the government around Rs 100 crore. She also announced a loan guarantee scheme for the tourism sector because it has been one of the worst-hit sectors by the covid-19 pandemic. Under the scheme, loans will be given with a 100 percent guarantee of up to Rs 10 lakh for travel agencies and Rs 1 lakh for regional tourist guides.
3. Rs 1.1 lakh crore loan guarantee scheme
• A Rs 1.1 lakh crore loan guarantee scheme was announced for Covid-affected sectors. Out of Rs 1.1 lakh crore, Rs 50,000 crore will be provided to the health sector. It will benefit 25 lakh beneficiaries as they will be able to borrow up to Rs 1.25 lakh through micro-finance institutions (MFIs). Both public and private hospitals can avail a maximum of Rs 100 crore with a guaranteed duration of three years.
4. ECLGS cap raised by Rs 1.5 lakh crore
• The Cap of Emergency Credit Line Guarantee Scheme (ECLGS) was increased from Rs 3 lakh crore to Rs 4.5 lakh crore. ECLGS scheme was announced as part of the Aatmanirbhar Bharat package in 2020.
5. Rs 33,000 crore for NEIA
• The Ministry of Finance announced a corpus that will enable the National Export Insurance Account (NEIA) to underwrite an additional Rs 33,000 crore of project exports over five years. NEIA facilitates cover for buyer’s credit to project exporters and borrowers having lesser creditworthiness, through EXIM Bank.
6. Extension of Aatmanirbhar Bharat Rozgar Yojana
• Aatmanirbhar Bharat Rozgar Yojana was extended from June 30, 2021, till March 31, 2022. This wage subsidy scheme was announced with the aim of incentivizing employers through EPFO to generate fresh employment.
7. PPP projects, DISCOMs, BharatNet
• New process is being adopted for speedy clearance of public-private partnership projects. Rs 3.03 lakh crore was allocated to revamp DISCOMs. Additional Rs 19,041 crore was allocated to BharatNet to improve broadband connectivity to villages.
8. Fertiliser subsidy, PMGKAY
• Nutrient Based Subsidy (NBS) for fertilizers was increased to Rs 42,275 crore. Additional Rs 14,775 crore will be given to stakeholders, for DAP (Di-ammonium Phosphate) and NPK-based complex fertilizers.
